Recasting Of Financial Statements By Partners Of LLP

IntroductionSuppose a Limited Liability Partnership (‘LLP’) has filed its financial statements prepared for a financial year with the Registrar in terms of the applicable provisions of the Limited Liability Partnership Act, 2008 (‘Act’). However, due to certain reasons, there was a need to recast/ restate the said financial statements. The Act does not prescribe any provision for recasting of financial statements of an LLP unlike the Companies Act, 2013 (‘CA, 13’) which enables the companies to...

Government Proposes To Cap Cash Transactions At 2 Lakhs, Introduces 40 Amendments

The Government, on Tuesday, proposed to amend 40 Acts, including Companies Act, Employees Provident Fund, Smuggling and Foreign Exchange Act, TRAI Act and Information Technology Act, through amendments to the Finance Bill, reports PTI.One of the amendments proposes to cap cash transactions at Rs 2 lakh, instead of Rs 3 lakh as earlier proposed by Finance Minister Arun Jaitley. According to...

Tata Group V. Mistry: Minority Investors Cite Fiduciary Rules Under Companies Act, Challenge Nusli Wadia's Removal

Three minority shareholders in Tata Chemicals, Tata Motors and Tata Steel have filed a suit at the Bombay High Court challenging the removal of Nusli Wadia as an Independent Director by Tata Sons. Today, the single bench of Justice SJ Kathawalla directed the plaintiffs to provide a copy of the plaint to the Centre.The plaintiffs who are non-promoter shareholders in these three companies...

Tata Group V. Mistry: Minority Investors Cite Fiduciary Rules Under Companies Act, Challenge Nusli Wadia's Removal

Three minority shareholders in Tata Chemicals, Tata Motors and Tata Steel have filed a suit at the Bombay High Court challenging the removal of Nusli Wadia as an Independent Director by Tata Sons. Today, the single bench of Justice SJ Kathawalla directed the plaintiffs to provide a copy of the plaint to the Centre.The plaintiffs who are non-promoter shareholders in these three companies...

No proposal to review investigation mechanism under Companies Act: Minister

Arjun Ram Meghwal, Minister of State in the Ministry of Corporate Affairs today said that presently, there is no proposal to review the existing investigation mechanism under the Companies Act, 2013.In a written reply the Minister stated that Government has taken the following measures to curb and prevent corporate frauds:(i) ‘Fraud’ as a substantive offence has been introduced in...

Provisions of Sick Industrial Companies (Special Provisions) Act would prevail over the provisions of Companies Act: SC [Read Judgment]

The Supreme Court of India in M/s Madura Coats Limited v M/s Modi Rubber Limited has ruled that provisions of Sick Industrial Companies (Special Provisions) Act, 1985 would prevail over the provisions of the companies act.The M/s. Madura Coats Limited was aggrieved by the impugned judgment and order dated 20/05/04 of the Division Bench of the High Court of Allahabad which allowed the...

Prosecution launched against 169 Companies for failure to nominate Women Directors ; Finance Minister

There are 307 companies who have complied with mandate of law of nominating women to the Board of Directors. There are 169 companies against whom prosecutions have been launched for failure to nominate Women Directors. There are 16 companies who have filed compounding applications against prosecutions for offence relating to non-appointment of Women Directors.This was stated by Shri Arun...

SARFAESI Act is a Complete Code and there is no Lacuna or Ambiguity to warrant reading something more into it; SC [Read Judgment]

There is no plausible reason as to take recourse to any provisions of the Companies Act and permit interference in the proceedings under the SARFAESI Act either by the Company Judge or the liquidator, the Court said.The Supreme Court, has held that the Company Judge cannot interfere in a proceedings by a secured creditor to realize its secured interests as per provisions of the SARFAESI Act....

Unpaid Wages/Salary of the Workman/Employee is a “Debt” to be paid by the Company within the meaning of Companies Act: MP High Court (Full Bench) [Read the Judgment]

Full Bench of Madhya Pradesh High Court today, in Jonathan Allen Vs Zoom Developers Private Limited held that unpaid wages/salary of the workman/employee is a “debt” to be paid by the Company. Bench comprising of the Chief Justice A.M. Khanwilkar, Justices ShantanuKemkar and J.K.Maheshwari held that the employee of the Company has locus to file Company Petition in respect of his...

New Companies Act comes into force

The new Companies Act, 2013 that will come into force from today have many sections which are yet to be notified, which include setting up of a National Company Law Tribunal (NCLT), a National Financial Reporting Authority (NFRA), winding-up of sick companies and special courts. Some of the left out sections also related to the Investor and Education Protection Fund, compromise and...

Corporate Social Responsibility: From a Moral Duty to a Statutory Mandate

The theory of corporate social responsibility revolves around the discretionary, ethical, legal and economic expectations placed on businesses by society, Ethics, in this case, pertains to the perceived duty of businesses to adhere faithfully to law and avoid activity that undermines the welfare of investors, consumers, employees and citizens in the pursuit of profit. To some it conveys the idea of legal responsibility or liability; to others, it means socially responsible behavior in the...

Pending writ petition leads to holding back of NCLT recruitment

As per reports, the government, which had invited applications for the posts of judicial members in the National Company Law Tribunal, has put the process on after two months of doing so, as a writ petition filed by the Madras Bar Association is pending in the Supreme Court. The Supreme Court has been informed by the corporate affairs ministry that till the time the matter is resolved,...